Jump to content

Top 3 Ways to Earn More in DeFi and Crypto Industry


Eidoo

Recommended Posts

Posted

The cryptocurrency space is probably the best place to generate more profits. There are many ways and strategies to get exposure to this fast-growing industry, each with its specific risks. In the present article, we’ll discuss the three most popular approaches to benefit from digital currencies.

 

Even though each method sounds attractive, you should do your due diligence before investing real money. The first thing you should pay attention to is the risk/reward ratio of each yield-generating activity. We know that making easy money is everyone’s dream, but cryptocurrencies are not about that. There is nothing easy about crypto farming or trading digital currencies.

 

Even though there is excellent potential to generate substantial profits, you should spend a lot of time educating yourself on these matters. The crypto industry has been around for only about a decade, but the investment options abound.

 

That being said, here are the most common approaches to earn money with crypto.

Trading

The most straightforward method is to trade digital currencies on the platforms provided by cryptocurrency exchanges. Crypto traders speculate on the price of Bitcoin and altcoins in an effort to buy low and sell high or vice versa. Achieving consistent profits is challenging because cryptocurrencies are extremely volatile. Thankfully, there are many ready-made strategies based on fundamental and technical analysis.

You can earn crypto or fiat money by buying and selling digital currencies or trading derivatives, which are financial products that depend on the price of an underlying asset, e.g., futures contracts or options.

 

Derivatives, especially perpetual contracts (a type of futures), can be easier to trade because they don’t involve physical cryptocurrency and enable margin trading with high leverage. With margin trading, you can get exposure to any cryptocurrency with borrowed funds to maximize potential profits. However, this approach is much riskier.

 

Whether you trade actual cryptocurrencies or aim to earn crypto online by trading derivatives, there are three main trading styles you should know about:

● Short-term or day trading — day traders don’t leave their positions overnight, i.e., they open and close all positions during the same day. Thus, they have to be alert to market changes and spend several hours per day analyzing the markets and handling their positions. The benefit of this approach is that there can be many trading signals during any day. However, day traders are exposed to more risk given the high volatility of digital assets. As a rule, day traders rely on technical analysis.

 Swing trading — swing traders usually leave their positions overnight, as they aim for larger trends to earn money. This style is about catching a larger trend and benefiting from it until it reverses. Thus, swing traders can leave their positions open for several days or up to two weeks. This style is not as time-consuming as day trading, but it implies higher deposits.

 Long-term trading — long-term traders operate with much larger time frames, as they can keep their positions for weeks and months. You may include the so-called hodlers in this group. Most long-term traders rely on fundamental analysis and are not disturbed by the short-term volatility.

Mining and Staking

If trading is not your strength, you can consider mining or staking. The former is a reward-generating activity related to Proof of Work (PoW) blockchains, while staking is an approach to earn crypto by becoming a validator in Proof of Stake (PoS) blockchains.

 

Speaking about Bitcoin, securing profits through mining is difficult for the average person, as you would need to invest in expensive ASIC equipment. Still, there are mining pools that you can join at any time, though don’t expect high yields from that.

 

When it comes to the PoS algorithm and its variations, it’s difficult to tell what the best crypto for staking is, but most of them can provide an annual yield ranging from 3% to 10% and higher. The great thing about staking is that it involves lower risk compared to trading. PoS staking is getting more attention thanks to Ethereum’s upgrade.

 

While the staking rules differ from case to case, you will have to lock up a minimum amount of the native token in a special digital wallet in order to become a validator.

Joining the DeFi Trend

Another great approach to earn crypto is to jump onto the DeFi bandwagon. DeFi, from decentralized finance, has been the fastest-growing crypto sector during the last few months. It proposes a wide range of lucrative strategies that can be implemented by both retail and institutional investors.

 

The most popular DeFi platform activity is yield farming, in which investors lock up two different cryptocurrencies in a liquidity pool to contribute with liquidity and earn the native token or a given one as a reward.

 

Another common approach is DeFi staking, in which users lock up an amount of cryptocurrency or token to support the native ecosystem.

 

One of the best ways to earn with DeFi is by staking tokens and participating in yield farming schemes through Eidoo, a digital wallet application that integrates many DeFi perks. Eidoo benefits from the partnership with pNetwork — a DeFi-oriented project that connects different blockchains through special bridges that revolve around so-called pTokens. It currently hosts by far the largest number of bridges in the entire blockchain ecosystem.

 

You can earn pNetwork Token (PNT) and other tokens via the Steroids program, which can be accessed from Eidoo. For example, you can deposit pBTC (the Ethereum-based pTokenized Bitcoin) directly on the Eidoo app and earn PNT. Alternatively, you can add liquidity to PNT/USDT, ETH/PNT, and other pools. The Steroids program helps you implement the best crypto farming strategies. It enables investors to better manage their staking activities and rewards directly from the Eidoo app, with yield figures reaching up to 140%.

 

So far, investors have locked a total of about $40 billion in DeFi projects as of March 1, 2021, up from $15 billion at the beginning of 2021. This demonstrates that the DeFi trend is only growing. While DeFi staking and yield farming strategies involve some risks, the risk/reward ratio is still higher than trading.

 

You can earn money with any of the three approaches, but we believe that DeFi strategies are the most interesting and lucrative methods to secure passive income as of today.

 

So, what are you waiting for — join today!

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Similar Topics

    • https://www.key.top/ - Без Вложений Новый Кошелек на телефон Со своим блокчейном и майнингом биткоина

      Ссылка для регистрации  https://www.key.top/#/pages/index/index/?k=9ULBPENZ Что делать : =Перейдите по ссылке, нажмите "Зарегистрироваться" и введите свой адрес электронной почты и пароль (не добавляйте пробелы в конце сообщения, так как это сделает его недействительным) - Решите головоломку, перетащив объект вправо, чтобы он поместился на том же объекте. =Введите желаемое имя пользователя. Реферальный код появится автоматически. Если он не появится, вставьте этот код: 9ULBPENZ -С

      in Раздачи монет

    • lk.poools.top

      Приветствую! Ребята посоветовали новый пул, попробовал, очень доволен его работой. - выплаты больше, чем на других пулах, ненамного, но все же (специально сравнивал суточную сложность с другими пулами); - стабильный доход, выплаты ежедневные; - удобный и понятный интерфейс; - реализован внутренний кошелек на пуле, с возможностью там же в личном кабинете моментально менять BTC на USDT и выводить на любой кошелек. Можно выбирать сеть из 10 предложенных, с минимальной комиссией; - ас

      in Пулы совместного майнинга

    • https://goldrush-lewis.top/ - Лев казино: 100FS за установку приложения, бонусы и акции

      Бонусы казино Лев   Бонус за установку приложения   Дома, в пути или на работе – Лев казино всегда под рукой. Теперь у Вас есть мобильное приложение на Android. Скачайте его и ловите бонус за установку – 100 FS в игре Resident!   Как установить приложение   Перейдите в меню «Настройки» – «Безопасность» на смартфоне. Найдите пункт «Неизвестные источники» и разрешите установку (просто включите тумблер). Перейдите со смартфона по ссылке и ска

      in Игры, гэмблинг, казино, беттинг

    • https://bolly-yoleven.top/ - Болливуд казино: обзор, акции и бонусы, 37FS за установку телеграм-бота

      Онлайн казино Болливуд   Bollywood Casino – молодая игровая площадка с широкими возможностями, принимающая пользователей из разных стран, включая Россию. Онлайн казино Болливуд открылось в 2023 году. Лицензия на осуществление игорной деятельности выдана регулятором Кюрасао, что гарантирует пользователям безопасность. На сайте представлен широкий выбор азартных развлечений разных видов и разновидностей, интересные бонусы, увлекательные промо-акции и турниры. Регистрация доступна соверше

      in Игры, гэмблинг, казино, беттинг

    • 1wswqf.top Обзор Букмекерской конторы и казино 1WIN, бонусы до 50,000 рублей

      ОБЗОР на Букмекерскую контору и Казино  1WIN   Букмекерская контора  1Win – это прогрессивная компания, которая начала свою деятельность в 2016 году. Сейчас БК уверенно работает на рынке подобных услуг, имея многотысячную аудиторию беттеров по всему свету. Чтобы пользователи могли чувствовать себя комфортно на площадке, система поддерживает десятки языковых версий основной страницы. Кроме этого, бренд решил проблему входа для тех беттеров, которые в силу определенных причин не могут по

      in Игры, гэмблинг, казино, беттинг

×
×
  • Create New...